Difference between debit note & credit note

NITESH KUMAR (ACCOUNT ASSITENT) (72 Points)

27 June 2016

Sir please explain what is is Debit Note & Credit Note? who is issue Debit note & Credit Note with Example

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Shubham Gupta (Business Consultants) (2077 Points)
Replied 27 June 2016

Hello,

A debit note is a document issued by a buyer to a seller as a means of formally requesting a credit note.

To simplify Debit Note and credit Note Can be issued by any one i.e Buyer Or Seller.

Debit Note simply signifies that issuer is debiting the account of the party to whom it is issued.

for ex.

A purchased some goods of 100 rs from B.

A found the goods not as per standards, So "B" offered to reduce price.

So "B" issued Credit Note to "A",

Simmilarly "A" also could have issued Debit Note to "B" signifying that he have debited "B" accounts in his books of account.

CA Shubham Gupta

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